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Best Commercial Truck Loans April 2024

Commercial truck loans are created to help businesses buy commercial vehicles, such as semi-trucks, for business purposes. With a loan, a company can acquire the vehicle they need sooner as opposed to waiting until they have the cash on hand. Explore and compare rates, terms, and lenders to secure the ideal loan for your commercial trucking needs.

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Key Facts

  • Borrowers can find a personal loan option that fits their exact needs
  • Offers a comprehensive knowledge hub
  • Simple to use online loan comparison tool
  • Max Loan Amount: $100K

Pros

pros iconDeals with trustworthy lenders

pros iconWide range of personal loans to check out

pros iconEasy to use comparison tool

pros iconMore than four decades of experience

Cons

cons iconNot a direct lender

cons iconNo live chat

Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products. Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

  • $600-$100K Loan Amount
  • 300 Min Credit
  • 7.99-29.99% APR
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Key Facts

  • Trusted lender for over 100 years
  • Fast funding & no prepayment fees
  • Flexibility in choosing payments date
  • Max Loan Amount: $20K

Pros

pros iconFast time to funding

pros iconLong track record in the space

pros iconOffers secured and joint loans

pros iconPayment date flexibility

Cons

cons iconCharges numerous fees

cons iconMax possible loan is only $20,000

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The Site may provide general information about OneMain and the products and services offered by OneMain. Information on publicly-accessible pages of the Site (prior to authentication of your identity) does not constitute an offer to sell or a solicitation of any particular product or service. Some products and services may not be available in all states, and no product or service is available outside the United States. Your eligibility for particular products and services is subject to final determination, restrictions and acceptance by OneMain.

OneMain may discontinue or make changes to the information, products, licenses, or services described herein at any time. Any dated information is published as of its publication date only. OneMain does not undertake any obligation or responsibility to update or amend any such information. OneMain reserves the right to terminate any or all offerings without prior notice. Furthermore, by offering information, products or services through the Site, no solicitation is made by OneMain to any person to use such information, products or services in jurisdictions where the provision of information, products or services is prohibited by law. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07 to a total of $10,565.2.

  • $2K-$20K Loan Amount
  • 300 Min Credit
  • 18-35.99% APR
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Key Facts

  • APR: Varies by lender
  • Loan Term: Varies by lender
  • Min Credit Score: 300
  • Max Loan Amount: $40K

Pros

pros iconFunds direct deposited often within a single business day

pros iconAbility to compare a range of different options

pros iconHelps people with bad credit to get a loan

pros iconGood range of possible loan amounts

Cons

cons iconAPRs can be high

cons iconNot too much info about lenders

THE OPERATOR OF THIS WEBSITE IS NOT A LENDER, does not broker loans to lenders and/or lending partners and does not make cash advances or credit decisions. This Website does not constitute an offer or solicitation to lend. The operator of this Website is not an agent, representative or broker of any lender and/or lending partner and does not endorse or charge you for any service or product, but may receive compensation from the lender and/or lending partner for forwarding your information to them. In some cases, you may be given the option of obtaining a loan from a tribal lender and/or lending partner. Tribal lenders and/or lending partners are subject to tribal and certain federal laws while being immune from state law including usury caps. If you are connected to a tribal lender and/or lending partner, please understand that the rates and fees may be higher than state-licensed lenders and/or lending partners and you may be required to agree to resolve any disputes in a tribal jurisdiction. Additionally, your information may be going to an aggregator and not a lender and/or lending partner. Your information can be sold multiple times leading to multiple offers from lenders and/or lending partners, and other marketers. Lenders and/or lending partners who buy your information may supplement it with additional information about you that they obtain from other sources. Not all lenders and/or lending partners can provide your requested type of loan and/or loan rate or terms, and we make no promises that you will be able to obtain a loan. Cash transfer times may vary by lenders and/or lending partners and local laws. Lenders and/or lending partners may perform a credit check to determine your creditworthiness. In some circumstances faxing may be required. For details, questions or concerns regarding your cash advance, please contact your lender and/or lending partner directly. Lenders and/or lending partners are solely responsible to you for all aspects of any loan request or loan transaction, including compliance with all applicable laws and regulations relating to your loan request form and any agreement or disclosures relating to your loan request form or loan transaction (including any adverse action notices or Truth-in-Lending Act disclosures). If you are not connected with a lender you may be connected with other financial service providers that offer products associated with your selected loan purpose. Residents of Connecticut, New Hampshire, Washington, and Vermont are not eligible to submit a request for a cash advance on this Website. This service is not available in all states, and the states serviced by this Website may change from time to time and without notice. Short-term loans are an expensive form of credit and not a long-term financial solution. Please use short-term loans responsibly. Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680
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© Copyright 2011 – 2023. Lending For Bad Credit. All Rights Reserved. All trademarks, service marks, trade names, product names and logos appearing on the site are the property of their respective owners. Any rights not expressly granted herein are reserved. 

  • $100-$40K Loan Amount
  • 300 Min Credit
  • 6.99-35.99% APR
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Key Facts

  • Competitive rates available for good credit scores and income source
  • Access to financial advisors, private networking events, & unemployment protection
  • Flexible terms & payment options with no fees whatsoever
  • Max Loan Amount: $100K

Pros

pros iconPersonal loan application process is easy and only takes a few minutes to complete

pros iconSoft credit check that doesn’t affect your credit score and gives you personalized rates

pros iconFixed and variable rate loans available ranging from $5,000 to $100,000

pros iconNo late or origination fees required

pros iconExcellent customer support team

pros iconOnline autopay comes with a discount on interest

pros iconExclusive benefits for members (ex. networking events and access to financial advisors)

pros iconUnemployment Protection feature comes with a temporary payment pause (up to 12 months)

pros iconNo prepayment penalties

Cons

cons iconMay take up to 4 days to receive funds after approval (longer than other online lenders)

cons iconHigh eligibility requirements (ex. good credit and sufficient income)

“SoFi” is a registered trademark of Social Finance, Inc. SoFi is not affiliated with colleges and universities listed on SoFi.com. Colleges and universities listed on SoFi.com do not endorse, promote or recommend SoFi loan products.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 1121636. (www.nmlsconsumeraccess.org)

Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

©2022 Social Finance, Inc. All rights reserved.”

Fixed rates from 3.99% APR to 9.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 01/16/24 and are subject to change without notice. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-6%, which will be deducted from any loan proceeds you receive.Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

  • $5K-$100K Loan Amount
  • 680 Min Credit
  • 8.99-29.99% APR

Top Commercial Truck Loan Providers

bankrate-logo
Bankrate

More than 4 Decades of Experience

300

Min Credit Score

7.99-29.99%

APR. Fixed Rate

7.99-29.99%

APR. Variable Rate

$600-$100K

Loan Amount

24-60 Months

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

Yes

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

1 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Deals with trustworthy lenders
  • con-icon Wide range of personal loans to check out
  • con-icon Easy to use comparison tool
  • con-icon More than four decades of experience
  • con-icon Not a direct lender
  • con-icon No live chat

Loan Purpose

drop-down-btn
  • Car
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Household Expenses
  • Relocation
  • Car Bike Loans
  • Vacation
  • Wedding
  • Other

Loan Type

drop-down-btn
  • Secured Personal Loans
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans
  • Co-singer / Joint loans

300

Min Credit Score

18-35.99%

APR. Fixed Rate

18-35.99%

APR. Variable Rate

$2K-$20K

Loan Amount

24-60 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Yes

Other Fees

$25-$500

Origination Fee

None

Prepayment Fee

1 day days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Fast time to funding
  • con-icon Long track record in the space
  • con-icon Offers secured and joint loans
  • con-icon Payment date flexibility
  • con-icon Charges numerous fees
  • con-icon Max possible loan is only $20,000

Loan Purpose

drop-down-btn
  • Business Loans
  • Car
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Household Expenses
  • Mortgage
  • Relocation
  • Student Loan Refinance
  • Car Bike Loans
  • Vacation
  • Wedding
  • Other

Loan Type

drop-down-btn
  • Secured Personal Loans
  • Unsecured Personal Loans

300

Min Credit Score

6.99-35.99%

APR. Fixed Rate

6.99-35.99%

APR. Variable Rate

$100-$40K

Loan Amount

Varies

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

N/A

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

1 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Funds direct deposited often within a single business day
  • con-icon Ability to compare a range of different options
  • con-icon Helps people with bad credit to get a loan
  • con-icon Good range of possible loan amounts
  • con-icon APRs can be high
  • con-icon Not too much info about lenders

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Major Purchase
  • Medical Expenses
  • Household Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans

What Is a Commercial-Truck Loan? 

Commercial truck financing involves securing a loan or lease arrangement designed to spread out the costs associated with buying a commercial vehicle. While you work towards repaying the borrowed funds, you will also cover interest charges and, in some cases, additional fees to your lending institution.

Commercial Truck Loan: Key Terms to Know

In order to understand how this truck loan works, let's get familiar with some of the most common terms you might come across.

  • Interest rate: The interest rate is a percentage that’s based on the borrower’s risk level. It’s typically fixed, meaning it won’t change over time. However, some loans come with a variable rate that changes with the market.
  • Loan term: This is the repayment term, or how long you have to repay the loan. A short-term loan typically lasts for two to four years. An average term loan lasts three to five years. And a long-term loan lasts five to 10 years.
  • Credit score: Having good credit (670+) can boost your approval odds and give you more competitive rates and terms. However, some lenders will still work with borrowers with bad credit.
  • Down payment: Most lenders require a down payment based on the purchase price. The higher the down payment, the better your approval odds. A larger down payment could also mean paying less in interest over time.
  • Collateral: Most commercial truck loans are secured using collateral, which is typically the vehicle itself.

How Commercial Truck Loans Work

The way a commercial truck loan works is simple. It helps businesses buy a vehicle over a period of time. The business owner applies for the loan and provides information about their business and the truck they want to buy, which may require them to pay money upfront as a down payment. If approved, the lender gives them the loan amount, interest rate, and repayment terms. The borrower pays back the loan in regular installments over a few years, and the truck serves as collateral.

Commercial truck loans can have different repayment terms, but most last from two to 10 years. Generally, a longer loan term means a lower monthly payment. The downside to a longer term is that you’ll pay more in interest over the life of the loan.

Several factors play into your eligibility for a commercial truck loan, as well as the rates you get. Most lenders will look at your credit score, business income and history, and other debts or liabilities you currently have. The better your credit and income, the lower your interest tends to be.

Certain loans will come with additional fees, so keep this in mind when comparing offers. Common fees include origination fees — incurred when you take out a loan — and late fees.

Common Vehicles for Commercial Truck Loans

You can use a commercial truck loan for several different types of vehicles. This includes:

  • Large tractor trailers
  • Delivery vans
  • Medium-sized box trucks
  • Semi-trucks
  • Tanker trucks
  • Dump trucks
  • Flatbed trucks
  • Used commercial trucks
  • New commercial trucks

Be prepared to explain which type — or types — of vehicle you intend to purchase with your loan. Otherwise, a lender might not approve your application.

Average Commercial Truck Loan Rates and Requirements

Rates and requirements vary by lender, but here are some commercial truck loans from reputable lenders:

660

Min Credit Score

7.99-25.49%

APR. Fixed Rate

$5K-$100K

Loan Amount

2-7 years

Repayment terms

No

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

1 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Get a loan for practically anything
  • con-icon Autopay discount available
  • con-icon Dedicated app to manage your loan
  • con-icon LightStream doesn’t charge any fees
  • con-icon Personal loan up to $100K
  • con-icon Requires steady income
  • con-icon 1-3 Days till funding

Loan Purpose

drop-down-btn
  • Car
  • Major Purchase
  • Household Expenses
  • Vacation
  • Wedding
  • Other

Loan Type

drop-down-btn
  • Secured Personal Loans
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans

600

Min Credit Score

8.99-35.99%

APR. Fixed Rate

8.99-35.99%

APR. Variable Rate

$2K-$50K

Loan Amount

36-60 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Yes

Other Fees

0.99-8.99%

Origination Fee

Undisclosed

Prepayment Fee

1-3 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Soft credit pull for pre-approval
  • con-icon Funding could arrive in 1 day
  • con-icon Application takes a few minutes
  • con-icon APR presented past pre-approval
  • con-icon Credit score criteria not clear
  • con-icon Loans require an origination fee

Loan Purpose

drop-down-btn
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding
  • Other

300

Min Credit Score

6.99-35.99%

APR. Fixed Rate

6.99-35.99%

APR. Variable Rate

$100-$40K

Loan Amount

Varies

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

N/A

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

1 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Funds direct deposited often within a single business day
  • con-icon Ability to compare a range of different options
  • con-icon Helps people with bad credit to get a loan
  • con-icon Good range of possible loan amounts
  • con-icon APRs can be high
  • con-icon Not too much info about lenders

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Major Purchase
  • Medical Expenses
  • Household Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans

300

Min Credit Score

18-35.99%

APR. Fixed Rate

18-35.99%

APR. Variable Rate

$2K-$20K

Loan Amount

24-60 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

Yes

Other Fees

$25-$500

Origination Fee

None

Prepayment Fee

1 day days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Fast time to funding
  • con-icon Long track record in the space
  • con-icon Offers secured and joint loans
  • con-icon Payment date flexibility
  • con-icon Charges numerous fees
  • con-icon Max possible loan is only $20,000

Loan Purpose

drop-down-btn
  • Business Loans
  • Car
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Household Expenses
  • Mortgage
  • Relocation
  • Student Loan Refinance
  • Car Bike Loans
  • Vacation
  • Wedding
  • Other

Loan Type

drop-down-btn
  • Secured Personal Loans
  • Unsecured Personal Loans

*Rates subject to change

How to Get a Commercial Truck Loan

Although the process can vary, here are the basic steps for getting a commercial truck loan:

  1. Determine your needs: Assess your business requirements and determine the type of truck you need and how much you can afford. Consider things like the truck's purpose, make, model, age, and estimated cost.
  2. Be aware of the eligibility requirements: Most lenders will check your credit score, income, and financial situation before offering you a loan. You may also need to provide a down payment, and income and financial statements for your business. If you have a specific vehicle in mind, make sure you know its current age and mileage.
  3. Compare loans and lenders: Shop around for lenders until you find a few that will work with you. Compare their requirements, rates, terms, and other fees. Some lenders — such as CAG Truck Capital — offer direct financing, while others are marketplaces. Narrow down your options to find the best one for your business.
  4. Gather the required documents: To secure a commercial truck loan, you need to collect the required documentation beforehand. Among them are financial statements such as
    • Specific details about the truck
    • Annual income statement
    • Balance sheets
    • Time in business
    • Bank statements
  5. Apply: Fill out the loan application and provide the lender with the information they need about your business, finances, and the truck you intend to buy. As soon as your application has been approved, review all loan terms, including interest rates, repayment terms, monthly payments, and fees.
  6. Prepare a Down Payment: Determine if a down payment is required and gather the necessary funds. The down payment amount can vary based on factors like the lender's policies, your creditworthiness, and the truck's age. It is typically a percentage of the truck's purchase price.
  7. Complete the Loan Process: It may take a few weeks to get your loan approved. Once you accept the loan offer, your lender will guide you through the remaining steps.

Commercial Vehicle Loans: Pros and Cons

There are several advantages and disadvantages to using a loan to buy a commercial vehicle, especially compared to leasing one. Here are the main ones to consider.

Pros  Cons
Poor or bad credit borrowers may qualify for a commercial truck loan Vehicles may be repossessed if payments aren't made
Finances commercial vehicles without cash Usually a down payment required by most borrowers for trucks
Increases working capital so you can use it for other expenses May have a higher monthly payment than leasing a vehicle
Tax depreciation: mileage and actual expenditures. A truck's value depreciates over time regardless of loan amount

When Should You Get a Commercial Truck Loan?

If you see industry changes or new opportunities for growth, consider taking out a commercial truck loan:

  • Seize new opportunities, reach wider customer bases, and increase revenue potential.
  • For full control over logistics operations, leading to timely deliveries and improved customer satisfaction for your business.
  • Flexibility to customize vehicles to meet specific business needs, enhancing operational efficiency.
  • To identify industry trends and select the appropriate type and size of trucks that align with your target market.

Borrowers may benefit from tax advantages when taking a commercial truck loan, as certain expenses related to the purchase and operation of commercial vehicles can be tax-deductible, potentially reducing overall tax liabilities.

Commercial Truck Loan Alternatives

While commercial truck loans are a common way for owner-operators to finance their trucking business, they may not be the best option for everyone. Fortunately, there are alternative financing options available that can help you get the commercial truck you need without a traditional loan. Some of these alternatives include:

  • Business line of credit: A business line of credit is a revolving credit account that you can draw from as needed, up to a predetermined credit limit. This can be a flexible way to finance your truck or other business expenses, as you only pay interest on the amount you use. However, you may need to provide collateral or have a good credit score to qualify for this type of financing.
  • Small business loans: There are a variety of small business loans available that can be used to finance a commercial truck purchase. These loans may be backed by the Small Business Administration (SBA) or other lenders, and may have different requirements and terms depending on the lender and the loan program. Some small business loans may require collateral, while others may have more lenient credit requirements.
  • Personal loans: While using a personal loan to finance a commercial truck is not ideal, it can be an option if you don't qualify for other types of financing. However, you should be aware that personal loans may have higher interest rates and shorter repayment terms than commercial loans, and you may not be able to borrow as much money.
  • Lease-to-own programs: Some dealerships or trucking companies may offer lease-to-own programs for commercial trucks. These programs allow you to lease a truck with the option to purchase it at the end of the lease term. This can be a good option if you don't have the cash on hand to purchase a truck outright, but want to build equity in a truck over time. However, lease-to-own programs may have higher overall costs than purchasing a truck outright, and you may be responsible for maintenance and repair costs during the lease term.
  • Equipment leasing: Instead of purchasing a truck, businesses can opt to lease it for a set period of time. This can be a good option for those who don't want to make a long-term commitment or who don't have the upfront funds to purchase a truck outright.
  • Invoice financing: This type of financing allows businesses to get cash advances on their outstanding invoices. This can help with cash flow and provide funds to purchase a truck without taking out a loan.

Leasing vs. Purchasing a Commercial Vehicle

When deciding whether to take out a loan to buy a commercial truck or lease one, there are a number of factors to consider. Some of the most important factors include:

  • Your budget: Buying a commercial truck can be a significant investment, while leasing can be more affordable in the short term.
  • Your needs: If you need a truck for a long period of time, buying may be the better option. If you only need a truck for a short period of time, leasing may be a better option.
  • Your driving habits: If you put a lot of miles on your truck, buying may be the better option. If you don't put a lot of miles on your truck, leasing may be a better option.
  • Your tax situation: The tax implications of buying and leasing a commercial truck can vary depending on your individual circumstances. It's important to consult with a tax advisor to understand the full implications of each option.
Leasing Purchasing

Lower upfront costs: Leasing typically requires a smaller down payment and lower monthly payments than purchasing.

Ownership: Purchasing a vehicle gives you full ownership and control over the asset.

Maintenance and repair included: Many lease agreements include maintenance and repair costs, which can save you money in the long run.

Customization: You can customize the vehicle to fit your business needs by adding graphics or modifications

Tax benefits: Lease payments may be tax-deductible as a business expense.

Equity: As you make payments on a purchased vehicle, you build equity that can be used as collateral for future financing needs.

Option to upgrade: At the end of the lease term, you can return the vehicle and upgrade to a newer model.

Resale value: When you own the vehicle, you have the option to sell it and potentially recoup some of your investment.

Flexibility: Leasing allows for more flexibility in terms of switching vehicles and adjusting fleet sizes as needed.

The total cost of ownership: Over the long term, purchasing a vehicle may be less expensive than leasing due to avoiding the cost of multiple lease payments.

Average monthly payment: $900-$1200

Average monthly payment: $1,500-$2,500

You should take the time to shop around for the right loan options. Carefully consider the costs and risks before applying for a second-hand commercial truck loan.